BILL NUMBER: SB 196	CHAPTERED  07/22/99

	CHAPTER   152
	FILED WITH SECRETARY OF STATE   JULY 22, 1999
	APPROVED BY GOVERNOR   JULY 22, 1999
	PASSED THE SENATE   JULY 8, 1999
	PASSED THE ASSEMBLY   JULY 1, 1999
	AMENDED IN ASSEMBLY   JUNE 28, 1999
	AMENDED IN ASSEMBLY   MAY 6, 1999
	AMENDED IN SENATE   FEBRUARY 24, 1999

INTRODUCED BY   Senator Brulte

                        JANUARY 19, 1999

   An act to amend Section 1982.3 of the Education Code, to amend
Section 53 of Chapter 330 of the Statutes of 1998, to amend Section
39 of Chapter 299 of, and Section 44 of Chapter 928 of, the Statutes
of 1997, and to amend Section 31 of Chapter 204 of the Statutes of
1996, relating to school finance, making an appropriation therefor,
and declaring the urgency thereof, to take effect immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 196, Brulte.  School finance.
   (1) Existing law requires any amounts received by a county
superintendent of schools for revenue limit purposes from the average
daily attendance of pupils enrolled in community schools to be
expended only for community school purposes.  Existing law requires
any county superintendent of schools operating county juvenile court
schools, county group home and institutions schools, or community
schools to maintain an account in their general fund, known as the
juvenile court and community school account, and to deposit all funds
derived from these programs in that account for expenditure for
specified related purposes.
   This bill would require that any amounts received by a county
superintendent of schools for revenue limit purposes from the average
daily attendance of pupils enrolled in community schools to be
expended only for the same purposes as authorized for expenditure
from the juvenile court and community school account.
   (2) Existing law enacted in 1998 reappropriated $3,030,000 from
the Proposition 98 Reversion Account to the Superintendent of Public
Instruction.
   This bill would increase this amount to $3,100,000 by
appropriating $70,000 to the Pasadena Unified School District for
support of the Pasadena Youth Center.
   (3) Existing law appropriates $16,969,000, without regard to
fiscal year, from the General Fund to the Superintendent of Public
Instruction to implement the model budget and accounting systems.  In
order for a school district or county office of education to receive
funds for this purpose, the school district or county office of
education is required to request disbursement and the request is
required to be received by the State Department of Education by June
30, 1999.
   This bill would change the date that the request is required to be
received by the State Department of Education to September 30, 1999.

   (4) Existing law enacted in 1997 appropriates $2,000,000 from the
General Fund to the State Department of Education, in augmentation of
the appropriations made in the Budget Act of 1997, for allocation to
school districts for home-to-school transportation.  Existing law
requires the Superintendent of Public Instruction, in allocating that
amount, to give highest priority to districts that have both (1) a
total cost per mile for the 1996-97 fiscal year for home-to-school
transportation of between 100% and 115% of the statewide average cost
and (2) either weather-related conditions, or terrain-related
conditions, that vary substantially from those of other districts
that the superintendent determines may be classified as high-impact,
high-efficiency districts.
   This bill would make an appropriation by requiring the
Superintendent of Public Instruction to allocate funds from the
appropriation for home-to-school transportation first to school
districts that both (1) have a total cost per mile for the 1996-97
fiscal year for home-to-school transportation that exceeds the
statewide average cost per mile, rather than a cost between 100% and
115% of the statewide average cost, and (2) weather-related or
terrain-related conditions, without regard to whether the districts
may be classified as high-impact, high-efficiency districts.
Following this allocation, if funds remain, the bill would require
the Superintendent of Public Instruction to augment funding allocated
to school districts eligible for a supplemental apportionment for
home-to-school transportation for reasons other than weather-related
or terrain-related conditions.  The bill would require that the
appropriation be included in the amounts appropriated by the state in
the 1997-98 fiscal year for the purpose of meeting the state's
minimum funding obligation to school districts and community college
districts under Section 8 of Article XVI of the California
Constitution for that fiscal year.  The bill would also delete
language stating that this appropriation is in augmentation of
appropriations made in the Budget Act of 1997.
   (5) Existing law enacted in 1996 appropriates $4,000,000 to the
Superintendent of Public Instruction for the purpose of establishing
the Discovery Science Center in Orange County for the 1996-97 fiscal
year.  Existing law requires the center to be an 80,000 square foot,
hands-on, interactive learning facility.
   This bill would instead require the Discovery Science Center to be
up to 80,000 square feet in area.
   (6) To the extent that the funds appropriated by this bill are
allocated to a school district or a community college district, those
funds would be applied toward the minimum funding requirements for
school districts and community college districts imposed by Section 8
of Article XVI of the California Constitution.
   (7) Existing law appropriates funds in the Budget Act of 1997 for
adult education and remedial education services for participants in
the Greater Avenues for Independence (GAIN) program.
   This bill would reappropriate the unencumbered balance as of June
30, 1999, of the funds appropriated in the Budget Act of 1997 for
those identified programs for allocation on a one-time basis for the
purpose of providing school districts an opportunity to apply for
additional authorized units of adult education average daily
attendance to support the development of site information systems.
   (8) This bill would declare that it is to take effect immediately
as an urgency statute.
   Appropriation:  yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 1982.3 of the Education Code is amended to
read:
   1982.3.  Any amounts received by a county superintendent of
schools for revenue limit purposes that are derived from the average
daily attendance generated by pupils enrolled in a community school
shall be expended only for the purposes specified in subdivision (b)
of Section 42238.18.
  SEC. 2.  Section 53 of Chapter 330 of the Statutes of 1998 is
amended to read:
  Sec. 53.  The sum of three million one hundred thousand dollars
$3,100,000 is reappropriated from the Proposition 98 Reversion
Account to the Superintendent of Public Instruction in accordance
with all of the following:
   (a) Twenty thousand dollars ($20,000) for allocation on a one-time
basis to the Pasadena Unified School for the purchase of textbooks
for a tutoring program.
   (b) Eighty thousand dollars ($80,000) for allocation on a one-time
basis to the Santa Paula Unified School District for the purpose of
renovating a swimming pool.
   (c) Fifty thousand dollars ($50,000) for allocation on a one-time
basis to the Montebello Unified School District for the purpose of
purchasing school security devices.
   (e) One hundred eighty thousand dollars ($180,000) for allocation
on a one-time basis to the Los Angeles County Office of Education for
the purpose of developing middle school civic education curricula.
   (g) Two hundred thousand dollars ($200,000) for allocation on a
one-time basis to the Superintendent of Public Instruction, for
allocation on a grant basis to local educational agencies for support
of home economics careers programs, pursuant to legislation enacted
in the 1997-98 Regular Session.
   (j) Five hundred thousand dollars ($500,000) for allocation on a
one-time basis to the Lucia Mar School District for the purpose of
constructing a performing arts center.
   (k) Three hundred thousand dollars ($300,000) for allocation on a
one-time basis to the Los Angeles Unified School District for the
purpose of support of the California Arts Initiative.
   (m) One million dollars ($1,000,000) for allocation on a one-time
basis to the Superintendent of Public Instruction, for allocation on
a grant basis to local educational agencies, for the purpose of high
school coaching training, pursuant to legislation enacted in the
1997-98 Regular Session.
   (n) Seven hundred thousand dollars ($700,000) for allocation on a
one-time basis to the Los Glamitos Unified School District for the
purpose of support of the Los Alamitos High School for the Arts.
   (o) Seventy thousand dollars ($70,000) for allocation on a
one-time basis to the Pasadena Unified School District for support of
the Pasadena Youth Center.
  SEC. 3.  Section 39 of Chapter 299 of the Statutes of 1997 is
amended to read:
  Sec. 39.  (a) It is the intent of the Legislature that the funds
appropriated by subdivision (b) of Section 41 of this act be used
exclusively to implement the Standardized Account Code Structure.
Any funds not needed to complete this project shall be returned by
local education agencies to the Controller.
   (b) Of the amount appropriated in subdivision (b) of Section 41 of
this act, one million seventy-nine thousand five hundred
seventy-five dollars ($1,079,575) shall be allocated by the
Superintendent of Public Instruction to Phase I participants for the
purpose of fully funding their Standardized Account Code Structure
implementation contract agreements and grant awards entered into with
the State Department of Education prior to the 1997-98 fiscal year.

   (c) Of the amount appropriated in subdivision (b) of Section 41 of
this act, seven hundred twenty-eight thousand seven hundred
sixty-one dollars ($728,761) shall be allocated by the Superintendent
of Public Instruction to Phase I participants for the purpose of
providing total funding for a consortium that, on a consortium-wide
basis, averages five dollars ($5) per unit of average daily
attendance.  Total funding shall include any allocations provided by
subdivision (b), and appropriations authorized for disbursement from
Item 6110-188-0001 of Chapter 162 of the Statutes of 1996 and Section
13 of Chapter 525 of the Statutes of 1995.
   (d) Of the amount specified in subdivision (b) of Section 41 of
this act, fifteen million one hundred sixty thousand six hundred
sixty-four dollars ($15,160,664) shall be available for allocation by
the Superintendent of Public Instruction to Phase II participants at
the rate of five dollars ($5) per unit of average daily attendance,
except as provided in subdivisions (e) and (k).
   (1) In order for a school district or county office of education
to reserve state funds available for allocation by this subdivision,
the school district or county office of education shall notify the
State Department of Education by January 1, 1999, of its intent to
implement the Standardized Account Code Structures.  This
notification shall be on forms prescribed by the Superintendent of
Public Instruction.  All funds available for allocation by this
subdivision which are not reserved by a school district or county
office of education by January 1, 1999, shall be reverted to the
Proposition 98 Reversion Account within the General Fund, upon
notification by the Superintendent of Public Instruction to the
Controller's office.
   (2) In order for a school district or county office of education
to receive funds available for allocation by this subdivision, a
school district or county office of education shall request
disbursement of those funds on forms prescribed by the Superintendent
of Public Instruction.  Any request for funds must be received by
the State Department of Education by September 30, 1999.  Funds made
available for allocation by this subdivision which are not requested
by a school district or county office of education by September 30,
1999, shall be reverted to the Proposition 98 Reversion Account
within the General Fund, upon notification by the Superintendent of
Public Instruction to the Controller's office.
   (e) Of the amount available for allocation pursuant to subdivision
(d), a county office of education is eligible to receive a total
seventy-five thousand dollars ($75,000) for the county office of
education and all of the school districts in the county in which the
county office of education is located, in lieu of the rate of five
dollars ($5) per unit of average daily attendance pursuant to
subdivision (d), under the following conditions:
   (1) There is less than a combined total of 15,000 units of average
daily attendance for the county office of education and all school
districts in the county in which the county office of education is
located.
   (2) The county office of education and all of the school districts
in the county in which the county office of education is located use
the same accounting and budgeting system to implement the
Standardized Account Code Structure.  This subdivision shall also
apply to Phase I participants.
   (f) Of the amount available for allocation pursuant to subdivision
(d), the Superintendent of Public Instruction may allocate a level
of funds deemed necessary to allow a county office of education and
school districts in the county in which the county office of
education is located to implement the Standardized Account Code
Structure without incurring a fiscal hardship.  These exceptional
necessary allocations shall be made on a case-by-case basis.  This
subdivision is applicable only in a county with a relatively small
number of units of average daily attendance countywide, but where the
county office of education and school districts do not meet the
conditions set forth in subdivision (e).
   (g) (1) For any school district that implements the Standardized
Account Code Structure on the same accounting and budgeting system
used by the county office of education in the county in which the
school district is located, funds disbursed pursuant to subdivision
(d) shall be allocated directly to the county office of education.
   (2) Prior to the allocations pursuant to paragraph (1), the
superintendent of the school district, or his or her designee, shall
jointly certify with the county superintendent of schools, or his or
her designee, of the county in which the school district is located,
that the school district and the county office of education use the
same accounting and budgeting system.  This certification shall be on
forms prescribed by the Superintendent of Public Instruction.
   (h) (1) Except as provided in paragraph (3), each school district
and county office of education that receives funds disbursed pursuant
to subdivision (d), is required to fully implement the Standardized
Account Code Structure within 36 months from the date the funds are
disbursed to that school district or county office of education, or
repay those funds to the state, together with interest at a rate
based on the most current investment rate of the Pooled Money
Investment Account as of the date the funds are disbursed.  Interest
shall accrue as of the date the funds are disbursed.
   (2) The Superintendent of Public Instruction shall withhold from
the apportionments to be made to the school district or the county
office of education from the State School Fund an amount equal to the
amount owed pursuant to paragraph (1), and those funds shall be
immediately transferred by the Controller to the Proposition 98
Reversion Account within the General Fund.
   (3) Only under extraordinary circumstances and on a case-by-case
basis, the Superintendent of Public Instruction may grant extensions
upon approval of the Department of Finance to the 36-month period for
the purpose of determining whether repayment to the state is
required pursuant to paragraph (1).
   (i) (1) For purposes of this section, "fully implement" for a
school district is defined as submitting the following reports based
on a general ledger which reflects the Standardized Account Code
Structure:
   (A) The adopted budget for the school district pursuant to Section
42127 of the Education Code.
   (B) The financial and budgetary status reports pursuant to Section
42130 of the Education Code.
   (C) The annual statement of all receipts and expenditures pursuant
to Section 42100 of the Education Code.
   (2) For purposes of this section, "fully implement" for a county
office of education is defined as submitting the following reports
based on a general ledger which reflects the Standardized Account
Code Structure:
   (A) The adopted budget for the county office of education pursuant
to Section 1622 of the Education Code.
   (B) The financial and budgetary status reports pursuant to Section
1240 of the Education Code.
   (C) The annual statement of all receipts and expenditures pursuant
to Section 1628 of the Education Code.
   (j) It is the intent of the Legislature in enacting this section
that fiscal oversight responsibilities and services provided by the
county superintendent of schools pursuant to Chapter 1213 of the
Statutes of 1991 shall not be increased.  Consequently, for any
school district that uses an accounting and budgeting system that is
different from the system used by the county office of education in
the county in which the school district is located, the
superintendent of the school district, or designee, shall jointly
certify with the county superintendent of schools, or designee, of
the county in which the school district is located, that all
financial and budgetary data shall be submitted in a format that is
acceptable to that county office of education accounting and
budgeting system.  Prior to the disbursement to the school district
of any funds made available for allocation pursuant to subdivision
(d), this certification shall be submitted to and on forms prescribed
by the Superintendent of Public Instruction.
   (k) (1) For any school district that uses an accounting and
budgeting system that is different from the system used by the county
office of education in the county in which the school district is
located, the superintendent of the school district, or designee,
shall jointly certify with the county superintendent of schools, or
designee, of the county in which the school district is located, a
specific portion of the five dollars ($5) per unit of average daily
attendance, available for allocation pursuant to subdivision (d),
that shall be allocated by the Superintendent of Public Instruction
directly to the county superintendent of schools to pay for increased
core services cost, if any, to the county office of education that
are a direct result of the school district's implementation of the
Standardized Account Code Structure.
   (2) Upon request by either the school district or the county
office of education, the Superintendent of Public Instruction shall
determine the specific portion to be allocated directly to the county
office of education pursuant to paragraph (1).
   (l) Any school district or county office of education that
receives funds pursuant to subdivision (d) is subject to an annual
evaluation and to a final evaluation when full implementation is
achieved.  The evaluation shall be in a form or format prescribed by
the Superintendent of Public Instruction.
   (m) Acceptance by the school district or county office of
education of the funds made available pursuant to this section shall
constitute agreement by the school district or county office of
education to the conditions set forth in this section.
   (n) For purposes of this section, "Phase I participants" is
defined as the consortia of school districts and county offices of
education approved by the State Department of Education to receive
Standardized Account Code Structure funds appropriated by Item
6110-188-0001 of the Budget Act of 1996 or Section 13 of Chapter 525
of the Statutes of 1995.
   (o) For purposes of this section, "Phase II participants" is
defined as school districts and county offices of education that were
not Phase I participants, but choose to implement the Standardized
Account Code Structure and receive funds pursuant to subdivision (d).

   (p) For purposes of this section, "average daily attendance" is
defined as the unrevised 1996-97 first period report of average daily
attendance for the first principal apportionment for school
districts and county offices of education, adjusted by the
Superintendent of Public Instruction to exclude specific categories
of attendance inappropriate for purposes of the calculations made
pursuant to this section.
   (q) The Superintendent of Public Instruction is authorized to
transfer funds between subdivision (c) and subdivision (d) as
necessary to account for unanticipated amendments to the list of
local education agencies participating in Phase I.
   (r) It is the intent of the Legislature that the Standardized
Account Code Structure conversion plan, approved by the State Board
of Education in April 1997, shall be implemented in full.
  SEC. 4.  Section 44 of Chapter 928 of the Statutes of 1997 is
amended to read:
  Sec. 44.  (a) The sum of two million dollars ($2,000,000) is hereby
appropriated from the General Fund to the State Department of
Education first for allocation for the home-to-school transportation
program to school districts that are eligible for funding under
Section 41862 of the Education Code based on having both a total cost
per mile for the 1996-97 fiscal year for home-to-school
transportation that exceeds the statewide average cost per mile, and
either weather-related conditions or terrain-related conditions, as
described in Section 41862 of the Education Code.  If the funds
appropriated for the purposes of this section are not sufficient to
fully fund the formula established in Section 41863 of the Education
Code for school districts eligible for funding under Section 41862 of
the Education Code that have both a total cost per mile for the
1996-97 fiscal year for home-to-school transportation that exceeds
the statewide average cost per mile, and either weather-related
conditions or terrain-related conditions, the amounts apportioned to
these school districts shall be reduced on a proportionate basis.
   (b) Following allocation to districts that have both a total cost
per mile of the 1997-98 fiscal year for home-to-school transportation
that exceeds the statewide average cost per mile, and either
weather-related conditions or terrain-related conditions, as
described in Section 41862 of the Education Code, any remaining
balances in the appropriation shall be used to augment funds
allocated to school districts that are eligible for funding under
Section 41862 of the Education Code based on reasons other than
weather-related or terrain-related conditions.
   (c) For the purposes of making the computations required by
Section 8 of Article XVI of the California Constitution, the
appropriations made by subdivision (a) shall be deemed to be "General
Fund revenues appropriate for school districts," as defined in
subdivision (c) of Section 41202 of the Education Code, for the
1995-96 fiscal year, and included within the "total allocations to
school districts and community college districts from General Fund
proceeds of taxes appropriated pursuant to Article XIIIB," as defined
in subdivision (e) of Section 41202 of the Education Code, for the
1995-96 fiscal year.
  SEC. 5.  Section 31 of Chapter 204 of the Statutes of 1996 is
amended to read:
  Sec. 31.  (a) The sum of four million dollars ($4,000,000) is
hereby appropriated from the General Fund to the Superintendent of
Public Instruction for the purpose of establishing the Discovery
Science Center in Orange County for the 1996-97 fiscal year.  Funds
appropriated in this section shall be used on a one-time basis for
the construction and startup costs for the Discovery Science Center
in Orange County.  The center shall be up to 80,000 square foot in
area, hands-on, interactive learning facility.  The center shall be
in a centrally located site to benefit all of Orange County, and
shall afford access to science to children who live in the less
affluent areas of the county.  The center shall serve as a resource
for public elementary and secondary schools, and shall offer programs
to Orange County schools, residents, and visitors.
   (b) For the purpose of making the computations required by Section
8 of Article XVI of the California Constitution, the appropriation
made by subdivision (a) shall be deemed to be "General Fund revenues
appropriated to school districts," as defined in subdivision (c) of
Section 41202 of the Education Code, for the 1995-96 fiscal year, and
included within the "total allocations to school districts and
community college districts from General Fund proceeds of taxes
appropriated pursuant to Article XIIIB," as defined in subdivision
(e) of Section 41202 of the Education Code, for the 1995-96 fiscal
year.
  SEC. 6.  The unencumbered balance as of June 30, 1999, of the funds
appropriated by Item 6110-156-0001 of Section 2.00 of the Budget Act
of 1997 (Chapter 282 of the Statutes of 1997) is hereby
reappropriated to the Superintendent of Public Instruction for
allocation to school districts on a one-time basis for the purpose of
providing school districts an opportunity to apply for additional
authorized units of adult education average daily attendance to
support the development of site management information systems.
Notwithstanding the provisions of Section 52616 and 52616.23 of the
Education Code, or any other provision of law, funds allocated
pursuant to this section shall not be included in the ongoing base
funding of individual adult education programs.
  SEC. 7.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   In order for funds appropriated to the Superintendent of Public
Instruction and the State Department of Education to be allocated
appropriately at the earliest possible time, it is necessary that
this act take effect immediately.
